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FILINVEST Development Corp. (FDC) is still keen on plans
to put up an ethanol plant to take advantage of the
emerging biofuels industry in the country.
At the
sidelines of its annual stockholders’ meeting Friday,
chairman Jonathan Gotianun said the company is in the
process of evaluating plans to go into the production of
ethanol using the byproduct of its sugar-milling
operations.
“Studies
are still being conducted. We will make an announcement
within the year,” he said in an interview.
The plan
involves the construction of an ethanol plant—possibly
in Davao—with an initial production capacity of 100,000
liters per day or an annual capacity of 30 million
liters.
“Construction of the ethanol plant will commence as soon
as evaluation of the possible suppliers of the plant is
completed,” added Gotianun.
He said
construction cost of the plant would likely reach P700
to P800 million.
“We
expect the plant to be cost-efficient because we will be
using the molasses produced by our sugar-milling
facility as feedstock for the ethanol plant,” the
company said earlier.
FDC was
supposed to get funding from the planned follow-on
offering, but this did not materialize given the current
weak market conditions.
The
Gotianun-led listed company has investments in real
estate, banking, manufacturing and sugar production.
This
year, FDC has allotted P22 billion for capital
expenditures, of which P6 billion will be channeled to
the residential property developments of subsidiary,
Filinvest Land Inc.
Another
unit, Filinvest Alabang Inc. will get P6 billion for two
mid-rise condominium projects called Entrata and The
Levels, and a business process-outsourcing office
development named The Studios. All projects are located
in Alabang, Muntinlupa.
For
2008, FLI plans to launch 34 projects nationwide. These
include socialized and affordable housing, middle-rise
buildings, commercial developments within subdivisions.
These projects are expected to generate P8.6 billion in
sales. They are located in
Cavite,
Batangas, Bulacan, Rizal, Caloocan City, Rizal, Laguna,
Cebu, Davao, Butuan City in Mindanao, Davao City, Pasig
City, Sta. Mesa in Manila and Las Piñas.
The
company is in charge of developing commercial centers,
mid-rise residential buildings, office developments
catering to business process outsourcing companies and
horizontal developments. The group expects to offer
various financing schemes to make real-estate projects
still affordable to potential buyers amid the slowdown
in the economy.
Locators
in the
Filinvest City
are also developing a 500-room hotel, called Acasia
Grove Hotel, while Bellevue Manila is constructing
additional 235 rooms and suites.
FDC
plans to fund the programmed capex through a combination
of internally-generated cash and peso borrowings.
Last
year, the company posted a consolidated net profit of
P2.15 billion from P1.8 billion a year earlier.
Consolidated revenues, meanwhile, grew to P7 billion
from P5.2 billion in 2006. |
